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Dec 23: While They're Shopping, You Could Be Building Wealth 🎁

Last-Minute Opportunities in a Week Everyone Else is Checked Out

Author

Alex Veytsman
December 23, 2025

🎅 The Lending Letter 🏡

December 23rd: While They're Wrapping Gifts, Smart Money is Wrapping Up Opportunities

Happy Tuesday! ☕ It's December 23rd—the day before Christmas Eve. Right now, 90% of America is either frantically finishing last-minute shopping, stress-baking cookies, or pretending they definitely didn't forget to get batteries for all those kids' toys. 🎁

But you? You opened this newsletter. Which means you're part of the 10% who know that when everyone else checks out, that's exactly when opportunities show up. So let's talk about what's happening with rates, what it means, and why this week matters more than you think. 📊

📊 TODAY'S 30-YEAR FIXED RATE
6.27%
↑ +0.03% from yesterday
According to Mortgage News Daily | December 23, 2025

🎄 The Christmas Week Market Reality

That tiny 3-basis-point uptick today? That's basically nothing. Think of it like gaining 0.3 pounds on Christmas—technically measurable, but not worth stressing about. The bigger picture here is that we're still sitting comfortably in the low-to-mid 6% range, which according to Freddie Mac's historical data, is actually quite reasonable compared to the last few decades. 📈

Here's what's wild about this week: the housing market doesn't actually stop for Christmas. While transaction volume drops (because, you know, eggnog and family time), the deals that ARE happening right now often involve highly motivated parties on both sides. Sellers who are still listing during Christmas week? They need to move. Buyers who are house hunting on December 23rd? They're serious. 🎯

🎁 The Christmas Week Advantage

Most people think real estate shuts down for the holidays. Wrong. What actually happens is that casual browsers disappear, leaving only serious buyers and sellers. According to Realtor.com research, competition drops significantly during holiday weeks while motivated sellers remain. Translation: leverage shifts to buyers who are actually paying attention. That's you. 👀

💰 Lender Promos: Your Year-End Opportunity Window

🏠 Need a Loan for Any Property? We're talking primary residence, vacation home, rental property—whatever you're after. Lenders have year-end quotas to hit, which means this week they're actually motivated to close deals. Fill out this quick form and we'll connect you with lenders who want your business before the calendar flips to 2026. ✅

🏢 Investment Property Opportunities? Listen, end-of-year buying for rentals is one of the smartest plays nobody talks about. Close in December, start collecting rent in January, and depreciation kicks in for the full 2025 tax year. Connect with investment specialists here who live and breathe rental property ROI. 💼

🏖️ Short-Term Rental Plans for 2026? Smart STR investors are locking in properties NOW for peak 2026 season. Why? Because everyone else will be scrambling in March when spring breaks start. Be the early bird. Talk to STR financing specialists here who understand ADR, occupancy rates, and all that vacation rental goodness. 🎪

🧠 Educational Corner: Understanding PMI vs MIP (And Why It Actually Matters)

Let's tackle one of the most confusing topics in mortgages: PMI versus MIP. Both are types of mortgage insurance, both cost you money, but they work completely differently. And understanding this could literally save you thousands of dollars. 🤓

PMI (Private Mortgage Insurance) is what you pay on conventional loans when you put down less than 20%. Here's the key thing: you can get rid of PMI. Once your loan-to-value ratio hits 80% (either through paying down the mortgage or your home appreciating in value), you can request PMI removal. According to CFPB guidelines, lenders must automatically terminate PMI when your LTV reaches 78%. 📉

MIP (Mortgage Insurance Premium) is what you pay on FHA loans. Plot twist: you generally CANNOT get rid of MIP unless you put down at least 10% (then it drops off after 11 years), or you refinance into a conventional loan. For most FHA borrowers with less than 10% down, MIP is for the life of the loan. 😬

💡 The Real-World Math

Let's say you're buying a $400,000 home with 5% down:

Conventional Loan with PMI:
• Upfront cost: ~$0
• Monthly PMI: ~$200-300
• Can be removed: Yes, once you hit 80% LTV
• Total PMI paid if home appreciates 5%/year: ~$7,000-10,000 over 3-4 years

FHA Loan with MIP:
• Upfront cost: 1.75% of loan amount (~$6,650)
• Monthly MIP: ~$250-350
• Can be removed: Only by refinancing
• Total MIP paid over 30 years: ~$96,000-126,000 💸

See the difference? According to NerdWallet's analysis, FHA loans can seem more accessible upfront, but the lifetime MIP cost can be staggering. This is why many borrowers who start with FHA should have a refinance strategy ready for when they hit 20% equity. 📊

Pro Tip: If you can scrape together 10% down and have decent credit (680+), conventional is almost always the better move. Yes, the upfront hurdle is higher, but the long-term savings dwarf the short-term pain. Talk to your lender about running both scenarios before you commit. 🎯

🏘️ For Real Estate Investors: The December Tax Play Nobody Mentions

Okay, buckle up because this is where things get interesting. We're 8 days from the end of 2025, and if you're an investor, there's still time to make moves that impact this year's taxes. 🎯

Cost Segregation: The Last-Minute Tax Bomb
If you bought rental property anytime in 2025, you need to know about cost segregation studies. This is an IRS-approved method where you accelerate depreciation on certain property components. Instead of depreciating everything over 27.5 years, you identify items that can be depreciated over 5, 7, or 15 years. We're talking potentially $20,000-100,000+ in additional deductions for your 2025 taxes. 💰

The kicker? You can apply this retroactively to properties you bought earlier this year. According to IRS Publication 946, cost segregation is completely legit, and if you qualify for bonus depreciation, the benefits are even more insane. Get a cost seg estimate here from our partners—it takes 5 minutes and could save you five figures. ✨

The Furnishing Play for STR Owners
Got a short-term rental that needs furniture, amenities, or renovation? Here's a move: our partner offers 0% interest funding specifically for STR improvements. You furnish the property, increase your nightly rate, improve reviews, and don't pay a penny in interest. It's basically free money with good credit. Check if you qualify here. 🛋️

💼 The December Closing Strategy

If you close on a rental property between now and December 31st, you can claim depreciation for the ENTIRE year of 2025, even if you only own the property for 8 days. This is why IRS rules make December closings so powerful for investors. That's potentially $10,000-15,000 in deductions just from owning something for a week. 🎁

And here's the play: even if you can't close by December 31st, getting pre-approved now means you're positioned for January deals when inventory typically increases. Start the process here so you're not scrambling when the perfect property hits the market. ⏰

🎓 Personal Finance Hack: The "Christmas Bonus" Bank Account Strategy

🎯 Banking Like a Pro: The Sweep Account Method

Here's a personal finance strategy that most people don't know exists: using a sweep account structure to maximize interest on idle cash. This is different from just parking money in a high-yield savings account—this is about creating an automated system that makes your money work harder without you thinking about it. 🧠

How It Works: You set up three accounts with automatic rules:

1. Operating Account (Checking)
Keep only what you need for monthly expenses plus a small buffer. According to Bankrate, most people keep way too much in checking, earning basically zero interest. Set this at exactly one month's expenses. 💵

2. High-Yield Savings (The Sweep Target)
This is where excess cash automatically sweeps. Set up a rule: anything over your checking buffer automatically transfers here weekly. Right now, the best HYSAs are paying 4.5-5.0% APY. That's your working capital earning real returns. 📈

3. Investment Account (The Overflow)
When your HYSA hits a certain threshold (say, 6 months expenses), excess automatically moves to your brokerage for long-term investing. This is money you don't need for 5+ years, so it goes into index funds or whatever your investment thesis is. 🚀

The Real Magic: Most banks now offer automated transfers based on balance thresholds. Set it once, forget about it. According to NerdWallet's research, the average American has $41,600 in savings. If that's sitting in a 0.01% checking account instead of a 4.5% HYSA, they're leaving $1,869 per year on the table. 😱

Real Example: Let's say you keep $8,000 in checking (one month expenses), sweep to HYSA up to $48,000 (six months emergency fund), and overflow to investments. If you did this with $60,000 total:

• Checking: $8,000 @ 0% = $0
• HYSA: $40,000 @ 4.5% = $1,800/year
• Investments: $12,000 @ 10% avg = $1,200/year
Total: $3,000/year passive income just from organizing your cash better. 💰

Bonus Tip: Some banks like Wealthfront, Marcus, and Ally offer "buckets" or "goal-based savings" that make this even easier. You can have your emergency fund, down payment fund, and vacation fund all in one account earning the same high rate, but mentally separated. Compare rates here to make sure you're getting the best deal. 🎯

Why This Matters During Holidays: If you got a year-end bonus or tax refund, don't let it sit in checking earning nothing. Immediately sweep it to your HYSA, where it can earn 4-5% while you decide what to do with it long-term. Even just one month at 4.5% on a $10,000 bonus is an extra $37.50. Not life-changing, but it's literally free money for moving some digits around. 🎁

📊 Market Intel: What's Really Happening This Week

Let's talk about what the market actually looks like heading into Christmas:

The Fed's Playing It Cool
The Federal Reserve's last meeting of 2025 wrapped up, and as expected, they're holding rates steady. According to the FOMC statement, they're in "wait and see" mode for early 2026. Translation: mortgage rates probably won't swing wildly in the next few weeks unless something weird happens. Stability = predictability = you can plan accordingly. ✅

Holiday Inventory Dynamics
Here's what's interesting: while new listings drop during Christmas week (because who wants showings on December 26th?), the properties that ARE listed tend to be more negotiable. According to Zillow's market data, sellers who keep their homes active through the holidays are typically more motivated than average. Factor in that buyer competition is at annual lows, and you've got a recipe for solid negotiation opportunities. 🤝

The January Pipeline Effect
Smart money knows that January inventory spikes as people list post-holidays. But here's the play: getting pre-approved NOW means you're ready to pounce when those listings hit. Everyone else will be scrambling for appointments with lenders in early January while you're already writing offers. Get ahead of the curve here. 🏃‍♂️

🎯 The December 23rd Reality Check

Look, we're not going to tell you this is the perfect time to buy a house just because it's late December. That would be ridiculous. But here's what IS true:

Rates at 6.27% are historically reasonable. According to Freddie Mac historical data, the average 30-year rate from 1971-2024 was 7.74%. So yeah, we're actually below historical average. Not exciting, but factual. 📉

The tax calendar is real. Close in December, deduct in December. The math is simple: a rental property that closes on December 30th gets you a full year of depreciation deductions. That's potentially $10,000-20,000 in tax savings just from timing. For investors, this is massive. 💰

Competition is at annual lows. While you're reading this, 90% of potential buyers are focused on wrapping presents and planning New Year's Eve. Which means if you're actually shopping for property right now, you're competing against the 10% who are serious, not the 90% who are browsing. Better odds. 🎯

⏰ Your December 23rd Action Plan:

If you're even remotely thinking about buying in early 2026, do this today:

🌟 The Bottom Line

Today is December 23rd, 2025. Tomorrow is Christmas Eve. In 8 days, we flip to a brand new year. And here's what matters: this weird limbo week between Christmas and New Year's is when smart money quietly positions itself for January. 🎯

Rates at 6.27% aren't going to make headlines. They're not exciting. But they're workable, predictable, and paired with tax strategies and year-end positioning, they can absolutely help you build wealth. 💪

Most people are checked out this week, and that's fine. But the people who build serious real estate portfolios? They're the ones making moves when everyone else is eating cookies and watching holiday movies. Not because they're workaholics, but because they understand timing. ⏰

So enjoy your holidays. Eat the dessert. Sleep in on Christmas. But maybe, just maybe, take 10 minutes to get pre-approved or talk to an investment specialist. Future you—the one counting rental income in 2026—will appreciate it. 🎁

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See you tomorrow (Wednesday, December 24th - Christmas Eve!) for another dose of market reality! 🎄

Disclaimer: This newsletter is for informational and entertainment purposes only. Rates and terms vary by lender and borrower qualifications. Always consult with a licensed mortgage professional and tax advisor for your specific situation. The strategies discussed require careful consideration of your personal financial situation and risk tolerance. Past performance doesn't guarantee future results.